Exports poised to achieve 2021 target of $ 16 b

 

•  First 9 months’ haul tops $ 11 b mark, reflecting 70.63% achievement     of $ 15.7 b target set for     2021
•  Despite challenges export sector sustains resilience but Sept. fails to continue $ 1 b performance   achieved in previous 3 months
•  Merchandise exports up 19% to $ 8.88 b, Q3 performance up 5% to $ 3.2 b
• 9-month services exports estimated at $ 2.2 b 

 

Sri Lanka’s total exports has seen sustained growth during the past nine months, suggesting that the near $ 16 billion target for 2021 is achievable.

As per the latest data of the Sri Lanka Export Development Board (EDB) the country’s total exports were $ 11.1 billion in the first nine months, reflecting an achievement of 70.63% of the $ 15.72 billion target for the entirety of 2021.

In mid-2021, the EDB upwardly revised the original export target of $15.68 billion to $ 15.72 billion, as post-COVID reopening of the country augured well for a better export performance in 2021.

As per the new revision, EDB expects $ 12.14 billion from merchandise exports and $ 3.58 billion from services exports. Originally, it expected only $ 12 billion from merchandise exports, while services export target remained unchanged.

During the first nine months of the year, merchandise exports were up by 19.3% to $ 8.88 billion from the corresponding period of last year. The estimated value of services exports for the period of January to September was $ 2.2 billion, increasing 23.52% over the corresponding period of 2020. The services exports estimated by EDB consist of ICT/BPM, Construction, Financial services and Transport and Logistics.

January to September earnings from merchandise and services exports also reflect achievement of 73.17% and 62.01% respectively.

However, September export earnings fell slightly by 0.4% from previous year to $ 996 million, ending the $1 billion per month achievement in succession between June and August.

Merchandise exports recorded during the Q3 increased by 5% to $ 3,182.8 million compared to the same period a year earlier as well as in 2019 where it increased by 6.7%.

“Earnings show a strong resilience with both merchandise and services exports performing well. We are confident that this trend will continue and I commend all our exporters for their commitment to support the national economy by bringing in the much-needed foreign exchange,” EDB Chairman Suresh de Mel said.

He also said that the export performance of September is remarkable, particularly to see exporters› resilience this well amidst challenges in pandemic. 

The Chairman assured to extend fullest support to the exporters, noting that he and the staff of EDB are committed to facilitate the export sector in these challenging times.

Major exports in September: Export earnings from Apparel and Textile have increased by 5.83% year-on-year (y-o-y) to $ 457.05 million in September 2021 with strong performance in exports of Apparel (7.71%) and Woven Fabrics (62.73%). On a y-o-y basis, exports of Made-Up Textile Articles and Yarn and other Textile Articles declined by 40.26% and 34.14% respectively. Further, export earnings from Apparel and Textile decreased by 7.01% in September 2021 in comparison to August 2021.

Earnings from Rubber and Rubber Finished products exports increased by 20.04 % y-o-y to $ 96.09 million in September 2021, with strong performance in exports of industrial and surgical gloves (47.65%), Pneumatic and Retreated Rubber Tyres and Tubes (15.31%) and gaskets, washers, seals, etc. of hard rubber (28.72%)

Except Coconut kernel products, export earnings from fibre products and shell products categorised under the Coconut based products increased by 3.98% and 26.73% respectively in September 2021 compared to September 2020. On a year-on- year, export earnings from Desiccated Coconut, Coconut Milk powder and Coconut cream categorised under the Coconut Kernel Products increased by 9.22%, 10.53% and 29.11% respectively in September 2021. However, earnings from export of Coconut Oil and Liquid Coconut Milk decreased by 31.47% and 13.04% respectively in September 2021.

Being the largest contributor to Coconut based sector, Coco Peat, Fibre Pith and Moulded products which are categorised under the Coconut fibre products, increased by 26.73% to $ 14.08 million in September 2021 in comparison to S. Earnings from Activated Carbon, which is categorised under the Coconut shell products increased by 28.6% in September compared to the same period in 2020.

Earnings from Seafood increased by 39.21% to $ 22.58 million in September from a year earlier. This increase was mainly due to the increase in earnings from export of Shrimps and Prawns, Fish Fresh or Chilled and other edible fish.

Meanwhile, export earnings from Other Export Crops, Paper and Paper products, Non-metallic Mineral Products, Base Metal Products increased by 58.13%, 20.05%, 8.98% and 30.05% respectively in September compared to the corresponding period of 2020.

January-September major exports: For the period of January to September 2021, merchandise exports increased by 19.3 % to $ 8,881.93 million compared to the corresponding period of 2020, following increased exports of almost all the major product sectors; Apparel and Textiles, Tea, Rubber-based products, Coconut based products, Electronics and Electronic Components, Spices and Concentrates, Seafood and Ornamental fish.

Earnings from export of Apparel and Textile increased by 18.5% to $ 3,879.43 million during the first nine months in 2021 compared to the same period of 2020, export of apparel and woven fabrics expanded by 21.4% and 104.62% while exports of Made-Up Textile Articles and Yarn and other Textile Articles were down by 51.31% and 3.74%, respectively.

Export earnings from Tea increased by 7.29% to $ 986.56 million during the period of January to September 2021 compared with the corresponding period of 2020. Exports of all the subcategories of tea sector; Tea packets, Bulk Tea, Tea bags, Instant Tea and Green Tea increased by 10.4%, 3.44%, 33.55%, 28.95% and 33.96% respectively during the first nine months from a year ago.

In parallel, export earnings from Rubber and Rubber finished products increased by 37.19 % to $ 805.06 million in Jan-September 2021 compared with the same period of 2020 attributed to higher exports of Industrial and Surgical Gloves of Rubber (61.59%) and Pneumatic and Retreated Rubber Tyres and Tubes (39.43%).

For the first nine months of 2021, export earnings from Coconut and Coconut based products expanded by 24.14% to $ 608.76 m from the same period last year. Earnings from all the major categories of Coconut based products increased in the period of January-September 2021 compared with the corresponding period of 2020 due to the improved performance in export of Liquid Coconut Milk, Coconut cream, Coconut Milk Powder, Cocopeat, Mattress Fibre and Activated Carbon, Coconut Oil and Desiccated Coconut.

Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 25.75% to $ 309.62 million from January to September from a year ago. Export of Insulated wires increased by 49.52% during the period of January to September 2021 to $ 52.51 million compared with the corresponding period of previous year. In addition, exports of Electrical Transformers, Switches, Boards and Panels and Other Electrical and Electronic Products increased by 47%, 33.24% and 19.72% respectively during the period of January to September 2021 from a year earlier.

Export earnings from Spices and Essential Oils increased by 36.78% to $ 320.8 million in the nine-months from a year ago due to the better performance in all the sub categories; Cinnamon (10.31%), pepper (133.67%), cloves (155.79%), nutmeg and mace (19.20), essential oils (6.63%) and Oleoresins (69.21%), etc.

Export performance in major markets: Strong performances were recorded in 10 major export markets, which accounted for 63% of total merchandise exports from January to September 2021.

During the first nine months, exports to the US – Sri Lanka’s single largest export destination – increased by 14.97% to $ 2,175.46 million compared to the same period of 2020. The better performance led to an increase in exports of Apparel and Textile, Rubber based Products (Pneumatic and Retreated Rubber Tyres and Tubes, Industrial and Surgical Gloves of Rubber), Motor Vehicles Parts, Activated Carbon, Tea Packets and Cinnamon.

Exports to the UK – the second largest trading partner – recorded an increase of 2.31% to $ 679.55 million during the first nine months compared to the same period in 2020. It is reflected in the increased exports recorded in Apparel and Textile, Rubber based Products sectors (Pneumatic and Retreated Rubber Tyres and Tubes, Industrial and Surgical Gloves of Rubber) and Other Electrical and Electronic Products.

Exports to the Netherlands increased by over 50% during the period of January to September compared to the same period of 2020. Increased exports to Netherlands led by better performance recorded in Apparel and Textile (73.04%) and Liquid Coconut Milk (49.25%).

Exports to FTA partners: During the period of January to September 2021, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 25.25% to $ 635.43 million.

Exports to India and Pakistan increased by 24.97% and 27.66% y-o-y to $ 566.94 million and $ 68.49 million respectively during the first nine months. Increased exports to India is mainly supported by increased exports of Woven fabrics (194.92%) and Bicycles Not Motorised (276.31%) in the first nine months of 2021.

Export performance in regions: On a region wise comparison exports to all other regions increased except CIS regions from January to September compared to same period a year ago.

Exports to the European Union (EU) which comprise 24% of Sri Lanka’s exports from January to September increased by 27.78% y-o-y to $ 2,122.48 million.

Breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were; Germany $ 544.94 million (up by 26.73%), Italy $ 418.69 million (up by 26.78%), Netherlands $ 306 million (up by 51.13%), Belgium $ 243.11 million (up by 14.21%) and France $ 173.95 million (up by 27.28%).